A new study co-authored by Joshua Rauh of Northwestern University and Robert Novy-Marx of the University of Rochester, both finance professors, has concluded that without a change in their pension systems, federal, state and local governments "will need to raise taxes by $1,398 per household every year for the next 30 years if they are to fully fund their pension systems." The study also found that New Jersey "will need to increase its revenue by the largest margin, requiring $2,475 more from each household per year." That's if the new law hadn't passed.
Read more at the Washington Examiner: http://washingtonexaminer.com/opinion/columnists/2011/06/new-jersey-miracle-what-about-rest-us#ixzz1Qac59Upv
I'm surprised anyone's been able to tackle this. The absurdity that is driving these changes - in which politicians approve monstrous pay and benefits for state employees in exchange for votes and funding - is one of several reasons there's an issue with "jobs" creation. Government cannot "create" jobs, but it can easily and rapidly destroy piles of wealth, and with less wealth, there will be fewer jobs to be had.
Read more at the Washington Examiner: http://washingtonexaminer.com/opinion/columnists/2011/06/new-jersey-miracle-what-about-rest-us#ixzz1Qac59Upv
I'm surprised anyone's been able to tackle this. The absurdity that is driving these changes - in which politicians approve monstrous pay and benefits for state employees in exchange for votes and funding - is one of several reasons there's an issue with "jobs" creation. Government cannot "create" jobs, but it can easily and rapidly destroy piles of wealth, and with less wealth, there will be fewer jobs to be had.
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